Approved 2001 Minutes - Thursday, February 15, 200


Thursday February 15, 2001

The Board met at its offices at 450 N Street, Sacramento, at 9:35 a.m. with Vice Chairman Chiang, Mr. Klehs and Mr. Andal present, Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section; 7.9.

ANNOUNCEMENT OF CLOSED SESSION

The Board went immediately into closed session with Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

CLOSED SESSION

The Board met to discuss personnel matters and Revenue and Taxation Code 7093.5, 7093.5(b)(3), 30459.1 and 50156.11 settlements.

The Board recessed at 9:35 a.m. and reconvened at 9:55 a.m. in open session with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

ADMINISTRATIVE MATTERS, CONSENT

With respect to the Administrative Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Action: Adopt the following resolutions (Exhibit 2.6) extending its best wishes on their respective retirements and its appreciation for their service to the Board and the State of California.

Martha E. Garcia, Supervising Tax Auditor I, Norwalk District Office

Linda Fisher, Staff Programmer Analyst, Technology Services Division, Headquarters

Arthur Goldner, Business Taxes Specialist I, New York District Office

Serge G. Ceralde, Business Taxes Specialist I, Chicago District Office

Ronald D. Hayashi, Senior Specialist Property Appraiser, Policy, Planning and Standards Division, Headquarters

Rosary M. Rodriguez, Business Taxes Representative, Fresno Branch Office

Jane McCarthy, Supervising Tax Auditor, Houston District Office

Action: Approve the October 3-4, 2000 and the November 1-2, 2000 minutes.

Action: Approve the 2001 Timber Advisory Committee Membership (Exhibit 2.7).

Action: Defer consideration of the Return Processing Automation Project Contract.

Action: Approve the Non-Substantive Revisions to Audit Manual Chapter 8, Bars and Restaurants (Exhibit 2.8).

Exhibits to these Minutes are incorporated by reference.

LEGISLATIVE COMMITTEE

Margaret Shedd, Legislative Counsel, presented the Legislative Committee Report (Exhibit 2.9).

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

CUSTOMER SERVICES & ADMINISTRATIVE EFFICIENCY COMMITTEE

Delena Bratton, Chief, Customer and Taxpayer Services Division, presented the Customer Services & Administrative Efficiency Committee Report

(Exhibit 2.10).

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

BUSINESS TAXES COMMITTEE

Ray Hirsig, Deputy Director, Sales and Use Tax Department, presented the Business Taxes Committee Report (Exhibit 2.11).

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

PROPERTY TAX COMMITTEE

Larry Augusta, Assistant Chief Counsel, Property Tax Section, presented the Property Tax Committee Report (Exhibit 2.12).

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report.

CHIEF COUNSEL MATTERS – RULEMAKING

Larry Augusta, Assistant Chief Counsel, Property Tax Section made introductory remarks regarding Rule 122.5, Fixtures.

PUBLIC COMMENT ON RULE 122.5, FIXTURES

Speakers: Tom Kidwell, Madera County Assessor

Shirley Batchman, California Citrus Mutual

John Gamper, California Farm State Federation

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board authorized to amend Rule 122.5, Fixtures as requested by the petition submitted by the California Citrus Mutual. The Rule will be placed on the Property Tax Committee Rulemaking Calendar.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the Section 100 Change to Rule 133, Business Inventory Exemption.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the Section 100 Change to Rule 462.040, Change of Ownership – Joint Tenancies.

Warren Astleford, Tax Counsel, Legal Division made introductory remarks regarding the adoption of the changed version of Regulation 1503.

Upon motion of Mr. Andal, seconded by Mr. Chiang and duly carried, Mr. Parrish, Mr. Chiang, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted the changed version of Sales and Use Tax Regulation 1503, Hospitals, Institutions & Homes for the Care of Persons.

The request for authorization to publish, Sales and Use Tax Regulation 1671.1 was postponed to the May 8, 2001 Board Meeting.

Jean Ogrod, Assistant Chief Counsel, Administration and Settlement, made introductory remarks regarding amendments to the Rules of Practice.

Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the Section 100 Change to Regulations 5021, 5022, 5031, 5032, 5033, 5034, 5035, 5036, 5041, 5042, 5070, 5072, 5073, 5074, 5074.5, 5075, 5076, 5077, 5078, 5080, 5082, 5083, 5085, 5087, and 5092, Rules of Practice.

CHIEF COUNSEL MATTERS, PROPERTY TAX

City of Long Beach, Los Angeles County, ARA 00-004, 80226

4-06-00

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs voting no, Mr. Chiang and Ms. Mandel not participating, the Board moved to adopt and apply the April 6, 2000 Findings and Decision as recommended by staff.

City of Los Angeles, Los Angeles County, ARA 00-005, 80229

4-06-00

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs voting no, Mr. Chiang and Ms. Mandel not participating, the Board moved to adopt and apply the April 6, 2000 Findings and Decision as recommended by staff.

Pacific Gas & Electric Company, (135), SAU 00-018, 75859

2000, $13,997,700.00 Unitary Value

Action: The Board took no action.

Pacific Harbor Lines, Inc. (813), SAU 00-031, 76079

2000, $4,020,000.00 Unitary Value

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating, the Board adopted the Findings and Decision as recommended by staff.

Global Crossing Telecommunications, Inc. (2207), SAU 00-056, 76462

2000, $57,500,000.00 Unitary Value

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish and Mr. Andal voting yes, Mr. Chiang voting no, Mr. Klehs and Ms. Mandel not participating, the Board adopted the Findings and Decision as recommended by staff.

MCI Metro Access Transmission Services, LLC (2372), SAU 00-019, 75860

2000, $686,700,000.00 Unitary Value

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Klehs and Mr. Andal voting yes, Mr. Chiang and Ms. Mandel not participating, the Board adopted the Findings and Decision as recommended by staff.

AT&T Communications, (2310), SAU 00-017, 75816

2000, $2,002,900,000.00 Unitary Value

Action: The Board deferred consideration of this matter.

Global Crossing North American Networks, Inc. (7536), SAU 00-057, 76464

2000, $51,600,000.00 Unitary Value

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs abstaining, Mr. Chiang and Ms. Mandel not participating, the Board adopted the Findings and Decision as recommended by staff.

PUBLIC COMMENT

Robert Sandman, Deputy County Counsel, Placer County, made

comments on the petition for reassessment of Pacific Gas & Electric Company, (135), SAU 00-018, 75859.

LEGAL APPEALS MATTERS, ADJUDICATORY

Melvin L. Carter, SR KH 97-092280; 89002054730

1-1-91 to 3-31-97, $116,725.98 Tax, $29,315.44 Penalty, Fraud

Considered by the Board: Hearing Notice Sent – No Response

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Pete’s Auto Body, Inc., SR AP 97-216197; 30039

7-1-95 to 6-30-98, $00.00 Tax, $5,956.00 Penalty, Failure to Obtain a Valid Permit

Considered by the Board: Hearing Notice Sent – No Response

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

J.G. Boswell Company, SY AP 98-034163-010; 89002091030

1-1-95 to 12-31-97, $21,673.96 Tax

Considered by the Board: Hearing Notice Sent – No Response

Action: The Board deferred consideration of this matter.

Optivus Technology, Inc., SR EH 99-482047; 89002275710

5-1-93 to 9-30-96, $103,994.97 Tax, $1,578.74 Penalty, Failure to File

Considered by the Board: Hearing Notice Sent – No Response

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Hector Martinez, SR AP 99-653421-010; 89002345510

1-1-95 to 12-31-97, $3,968.15 Tax, $396.83, Penalty, Negligence

Considered by the Board: Hearing Notice Sent – No Response

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel abstaining, the Board ordered the petition be granted.

Oracle Corporation, SY BHA 26-705155; 89000652330

7-1-89 to 12-31-92, $941,563.24 Tax, $94,156.28 Penalty, Negligence

Considered by the Board: January 4, 2001

Action: The Board deferred consideration of this matter.

Lloyd Mark Morrissette, SR AA 17-778225; 89000214680

7-1-89 to 6-30-92, $35,728.71 Tax, $3,572.91 Penalty, Negligence

Considered by the Board: November 28, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Mr. Klehs moved that the petition be granted. Mr. Andal offered a substitute motion to reduce the taxable measure and remove the negligence penalty. The motion was seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes.

T.A.H.C., Inc., SR KHE 22-746216-010, 89000371490

10-1-94 to 9-30-97, $1,476.76 Tax

Considered by the Board: December 14, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Mr. Andal moved to redetermine as recommended by staff. Mr. Klehs offered a substitute to submit the matter for decision and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes.

National Cement Company of California, Inc., SY AC 22-786469; 89000378670

4-1-95 to 6-30-98, $200,000.00 Claim for Refund

Considered by the Board: December 14, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: (Motion expunged)

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that its previous motion to redetermine the petition be expunged.

Upon the motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Parrish voting no, Mr. Chiang not participating, the Board ordered the petition be redetermined as recommended by the Appeals Section.

S.D. Engineering, Inc., SS FH 25-830290; 89000578520, -540

4-1-87 to 3-31-90, $64,750.32 Tax

SS FH 25-830290; 89000578550, -570

7-1-90 to 6-30-96, $248,042.46 Tax

Considered by the Board: June 28, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Stephen Young & Clifford Jones, SR KH 28-705418; 89000748970

10-1-93 to 6-30-95, $7,477.97 Tax

Considered by the Board: May 3, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang not participating, the Board ordered that the petition for rehearing be denied.

FRANCHISE AND INCOME TAX MATTERS, ADJUDICATORY

Salvatore & Roberta Gangi, 49555

1981, $2,038.00 Assessment

Submitted for Decision: July 13, 2000

Contribution Disclosures pursuant to Government Code Section; 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Gene & Virginia Koepke, 29236

1992, $ 24,071.00 Assessment

1993, $ 6,617.00 Assessment

Considered by the Board: October 3, 2000

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board for 1992 and reversing the action of the Franchise Tax Board for 1993.

James & Janice E. Vines, 37455

1995, $27,683.00 Assessment

Submitted for Decision: June 9, 2000

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Thomas & Betts Corporation, 32822

1987, $18,361.00 Assessment

1988, $47,817.00 Assessment

1988, $ 1,981.00 Assessment

1989, $35,191.00 Assessment

1990, $ 2,076.00 Assessment

Considered by the Board: Petition for Rehearing

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Chiang, Mr. Andal voting yes, Mr. Klehs voting no, Ms. Mandel abstaining, the Board ordered that the Franchise Tax Board petition for rehearing be denied.

SALES AND USE TAX MATTERS, REDETERMINATIONS AND DENIALS OF CLAIMS FOR REFUNDS, ADJUDICATORY

Leiner Health Products, Inc., SR Y AB 030-630222; 89000818350

10-1-94 to 9-30-97, $121,712.14

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the redetermination as recommended by staff.

Comdisco Healthcare Group, Inc., SR S OHA 030-690964; 97695

4-1-92 to 6-30-95, $140,557.40 Claim for Refund

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the denial of a claim for refund as recommended by staff.

SALES AND USE TAX MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, ADJUDICATORY

Westfalia Separator Inc., SR S OHB 020-165619; 92379

1-1-96 to 12-31-98, $57,840.59

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the credit and cancellation as recommended by staff.

Harold Bohrer, SR EAA 024-735145; 100785

7-1-92 to 12-31-95, $151,179.84

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the credit and cancellation as recommended by staff.

Pacific Gas & Electric Company, SR Z BH 098-001535; 89002085350

10-1-95 to 6-30-96, $1,789,206.40

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Chiang and Mr. Andal voting yes, Mr. Klehs voting no, Ms. Mandel not participating, the Board approved the refund as recommended by staff.

Pacific Gas & Electric Company, SR Z BH 098-001535; 49882

10-1-96 to 12-31-98, $3,097,524.34

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Chiang, and Mr. Andal voting yes, Mr. Klehs voting no and Ms. Mandel not participating, the Board approved the refund as recommended by staff.

LEGAL APPEALS MATTERS, CONSENT

The Board deferred consideration of the following matters: Sonlite Signs, Inc., SR KH 28-896133; 15543, Edward Paul Cedillo, SR ARF 99-607688; 16245; Letter Excellence, SR AC 13-827269; 89000084890, -080, Cordax, Inc., SR EA 99-159240; 89002127090 and Jack & Lesly Kandel, SB UT 81-012722; 89001079560.

With respect to the Legal Appeals Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Nordisk Aviation Products, Inc., SY AS 12-705312; 89000047720

7-1-93 to 12-31-96, $10,904.85 Tax

Action: Redetermine as recommended by Appeals Section.

Uriel A. Pena, SR GH 26-744817; 37336

7-1-96 to 3-31-97, $00.00 Tax, $00.00 Penalty

Action: Redetermine as recommended by Appeals Section.

Sonlite Signs, Inc., SR KH 28-896133; 15543

4-1-95 to 3-31-98, $25,708.82, $2,570.90 Penalty, Negligence

Action: The Board deferred consideration of this matter.

LTV, LLC, SR GHC 97-500581; 48831

7-1-93 to 6-30-96, $3,829.16 Tax; $00.00 Penalty, Negligence, $46.42 Penalty, Finality

Action: Redetermine as recommended by Appeals Section.

Edward Paul Cedillo, SR ARF 99-607688; 16245

7-1-95 to 3-31-98, $119,954.69 Tax, $15,827.94 Penalty, Negligence

Action: The Board deferred consideration of this matter.

Nalco Exxon Energy Chemicals, Inc., Ltd. Ptn., SZ OHA 99-611092; 17730

10-1-94 to 12-31-97, $127,571.28 Tax

Action: Redetermine as recommended by Appeals Section.

On Target Marketing, SR KHE 22-837815; 89000392140

1-1-95 to 12-31-97, $00.00 Tax, $00.00 Penalty, Negligence

Action: Redetermine as recommended by Appeals Section.

David J. Bohn, SR JHD 27-826441; 89000732920

7-1-92 to 9-30-95, $00.00 Tax, $00.00 Penalty

Action: Redetermine as recommended by Appeals Section.

Artesyn North America, Inc., SR KH 99-828802; 41177

1-1-96 to 9-30-97, $00.00 Tax

Action: Redetermine as recommended by Appeals Section.

Zadian Technologies, Inc., SR GH 26-813741; 89000683660

7-1-93 to 4-30-96, $00.00 Tax, $00.00 Penalty

Action: Redetermine as recommended by Appeals Section.

John Romero; SY JH 27-773579; 89000718810

1-1-94 to 12-31-96, $4,639.13 Tax, $00.00 Penalty

Considered by the Board: June 14, 2000

Action: Redetermine as recommended by Appeals Section and deny the petition for rehearing.

Letter Excellence, SR AC 13-827269; 89000084890, -080

1-1-95 to 9-30-97, $7,165.51

Considered by the Board: August 29, 2000

Action: The Board deferred consideration of this matter.

Cordax, Inc., SR EA 99-159240; 89002127090

1-1-93 to 12-31-95, $12,344.99 Tax

Considered by the Board: October 3, 2000

Action: The Board deferred consideration of this matter.

Jack & Lesly Kandel, SB UT 81-012722; 89001079560

8-31-94, $3,712.50 Tax, $00.00 Penalty

Considered by the Board: August 30, 2000

Action: The Board deferred consideration of this matter.

FRANCHISE AND INCOME TAX MATTERS, CONSENT

The Board deferred consideration of the following matters: Fergus M. Bourke, 50324, April K. Dean, 48858 and Sandra S. Taber, 49608.

With respect to the Franchise and Income Tax Matters, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Bradley K. Beaver, 62406

1996, $2,489.00 Assessment

Action: Reduce the amount of the proposed assessment based on the credit allowable under Revenue and Taxation Code section 18001; otherwise sustain the action of the Franchise Tax Board.

Robert Borzage, 32600

1997, $2,710.00 Assessment, $1,426.00 Penalty, Late Filing

Action: Sustain the action of the Franchise Tax Board in the proposed assessment of additional personal income tax with regards to the filing enforcement cost recovery fee imposed; otherwise reverse the action.

Fergus M. Bourke, 50324

1992, $243.04 Claim for Refund

Action: The Board deferred consideration of this matter.

Robert & Jill Chiodo, 50334

1995, $1,097.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

DNA Productions, Inc., 47634

1996, $283.73 Claim for Refund

1997, $149.09 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Michael O. Daniels, 42874

1997, $5,812.00 Assessment, $1,453.00 Penalty, Delinquent Return

$1,453.00 Penalty, Failure to File

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

April K. Dean, 48858

1997, $956.82 Claim for Refund

Action: The Board deferred consideration of this matter.

Randal & Kristin Decker, 60043

1996, $1,128.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Julie Erikdotter, 42743

1995, $529.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Kenneth S. Garber, 37232

1993, $570.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

M. L. Grant, 42797

1997, $1,975.00 Assessment, $493.75 Penalty, Delinquent

$493.75 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Stephani Hashimura, 57649

1996, $602.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

LaVonne A. Hodgson, 47679

1994, $4,454.00 Assessment, $1,113.50 Penalty, Late Filing

$1,113.50 Penalty, Demand

Action: Reverse the action of the Franchise Tax Board with regards to the penalties imposed; otherwise sustain the action.

J. B. Edwards Leasing Co., 47694

1996, $ 20.50 Claim for Refund

1997, $2,152.60 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Herald & Hyang Sook Kim, 77964

1993, $3,672.87 Assessment

Action: Sustain the action of the Franchise Tax Board.

Brian Lundberg, 55251

1993, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Nancy Meyer, 82143

1996, $917.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Mroz Engineering Co., Inc., 41967

1995, $603.18 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

John Overholtzer, 41962

1996, $931.00 Assessment, $186.20 Penalty, Accuracy-related

Action: Sustain the action of the Franchise Tax Board.

Michael J. Saliba, 41839

1997, $4,757.00 Assessment, $1,189.25 Penalty, Delinquent

$1,189.25 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Michael D. Streeter, 41839

1997, $4,051.00 Assessment, $1,012.75 Penalty, Delinquent

$1,376.25 Penalty, Demand

Action: Reverse the action of the Franchise Tax Board with regard to the notice and demand penalty; otherwise sustain the action.

Symphony Montrose, LLC, 61490

1998, $800.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Sandra S. Taber, 49608

1998, $1,180.00 Assessment

Action: The Board deferred consideration of this matter.

Antonia E. Thomas, 61394

1996, $539.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Brenda Thomas, 42982

1997, $365.00 Assessment, $91.25 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board.

Vested Virgins, 37451

1996, $550.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Karen M. Vilas, 47263, -262

1995, $586.00 Assessment, $146.50 Penalty, Late Filing

1996, $1.00 or more Claim for Refund

1997, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

John H. Vories, 41872

1997, $2,179.00 Assessment, $544.75 Penalty, Delinquent

$547.25 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Harold L. & Katherine E. Weiner, 59276

1992, $30,478.00 Assessment, $22,858.50 Penalty, Fraud

1993, $ 560.00 Assessment, $ 420.00 Penalty, Fraud

Action: Modify the assessment of the Franchise Tax Board with regards to this matter for 1992; otherwise sustain the action.

Blake L. Wingle, 43088

1997, $3,395.00 Assessment, $848.75 Penalty, Delinquent

Action: Sustain the action of the Franchise Tax Board and impose a $750.00 frivolous appeal penalty.

Gary & Ann-Marie Jordan, 98A-1048; 89002468030

1993, $206.00 Assessment

Action: Deny the petition for rehearing as recommended by staff.

Eileen P. Tobis, 99A-0398; 15714

1997, $1,158.00.00 Assessment

Action: Deny the petition for rehearing as recommended by staff.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, CONSENT

With respect to the Homeowner and Renter Property Tax Assistance Matters, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Ann Bachovich, 79040

1998, $5.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Hazel I. Frazier, 57615

1999, $35.27 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Margie McAuley, 78254

1998, $42.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Regina Rand, 60931

1998, $1.00 or more Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Era V. Sanders, 62285

1999, $234.48 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Leona R. Shaffer, 62274

1998, $1.00 or more Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Rosalie A. Sproull, 62262

1998, $1.00 or more Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Jesus S. Tiangco, 78053

1996, $180.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Peggy P. Trkulja, 76069

1998, $35.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Bill Troy, 75974

1998, $68.56 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Mai L. Vang, 75995

1997, $147.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Elma L. Ward, 62292

1998, $92.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Mary A. Weldy, 62294

1999, $51.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Richard Williams, 62295

1999, $190.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Suzanne R. Williams, 76042

1998, $92.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Lois Willis, 51734

1999, $11.08 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Frank L. Wood, 51737

1999, $2,314.00 Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Alice S. Young, 62240

1998, $139.29 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

In Su Yu, 82073

1999, $451.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Jimmy Yung, 78042

1998, $73.71

Action: Sustain the action of the Franchise Tax Board.

SALES AND USE TAX MATTERS, REDETERMINATIONS, RELIEF OF PENALTY AND DENIALS OF CLAIMS FOR REFUND, CONSENT

With respect to the Sales and Use Tax Matters, Redeterminations, Relief of Penalty and Denials of Claims for Refund, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang and Ms. Mandel not participating in Oracle Corporation, SR Y BHA 099-727541; 100131, the Board made the following orders:

Allcity Paging Inc., SR Y AC 013-813551; 50390

7-1-93 to 3-31-95, $149,920.80

Action: Redetermine as recommended by Appeals Section.

Western Waste Industries, SR EH 014-726732; 89000120310

4-1-94 to 3-31-97, $361,615.57

Action: Redetermine as recommended by Appeals Section.

Los Angeles Turf Club, SR AP 017-; 89000193070

1-1-94 to 3-31-97, $236,287.07

Action: Redetermine as recommended by Appeals Section.

Surgical Dynamics, Inc., SR CHB 021-804896; 41888

4-1-94 to 6-30-98, $778,207.73

Action: Redetermine as recommended by Appeals Section.

Banc One Corporation, SR S OHA 030-636976; 89000822200

10-1-92 to 12-31-96, $238,454.01

Action: Redetermine as recommended by Appeals Section.

Hydra-Stop Inc., SC OHA 030-703549; 89000889320

1-1-94 to 12-31-97, $5,204.74

Action: Redetermine as recommended by Appeals Section.

Thomas M. Siebel, SP S UT 082-671730; 47285

3-23-97, $229,625.46

Action: Redetermine as recommended by Appeals Section.

Richard L. Hewitson, SB G UT 084-004470; 94369

4-25-98, $51,020.00

Action: Redetermine as recommended by Appeals Section.

John K. Bagley, SP H UT 084-007820; 93603

11-21-97, $54,862.50

Action: Redetermine as recommended by Appeals Section.

Westcoast Woodworkers Inc., SR S OHB 097-087999; 32193

11-1-94 to 9-30-97, $1,052,834.20

Action: Redetermine as recommended by Appeals Section.

Circuit City Stores West Coast Inc., SR Y OHB 099-487429; 51564

5-1-94 to 3-31-97, $580,593.42

Action: Redetermine as recommended by Appeals Section.

QLX Photoprocessing, Inc., SR Y OHB 099-852595; 79100

4-1-96 to 12-31-98, $76,186.00

Action: Redetermine as recommended by Appeals Section.

Men’s Wearhouse Inc., SR Y OHC 026-727757; 100221

4-1-00 to 6-30-00, $88,105.70

Action: Grant relief from penalty as recommended by staff.

Virgin Entertainment Group, Inc., SR Y AS 097-650844; 100101

4-1-00 to 6-30-00, $130,951.30

Action: Grant relief from penalty as recommended by staff.

General Motors Acceptance Corporation, SR Z OH 098-002755; 100102

7-1-00 to 7-31-00, $132,623.82

Action: Grant relief from penalty as recommended by staff.

Oracle Corporation, SR Y BHA 099-727541; 100131

4-1-00 to 7-31-00, $539,399.08

Action: Grant relief from penalty as recommended by staff. Mr. Chiang and Ms. Mandel not participating.

Scott Ferguson Garl, SR GH 099-709695; 60484

1-1-97 to 7-31-98, $58,504.00

Action: Deny claim for refund as recommended by staff.

SALES AND USE TAX MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, CONSENT

With respect to the Sales and Use Tax Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Ms. Mandel not participating in Southern California Edison Company, SR Z AP 098-000037; 88453 and Sun Microsystems Inc., SR Y GH 099-594260; 79165, the Board made the following orders:

First Security Bank, N.A., SP I UT 081-001828; 100901

7-10-97, $2,743,470.18

Action: Approve credit and cancellation recommended by staff.

Wyclif A. Reed, et al., SB G UT 082-639805; 101510

9-15-94, $104,816.16

Action: Approve credit and cancellation recommended by staff.

Geoaccess, Inc., SC OHA 097-632756; 101138

10-1-95 to 9-30-99, $152,954.07

Action: Approve credit and cancellation recommended by staff.

Clairol Incoporated, SR Y OHB 011-287275; 61473

1-1-97 to 12-31-97, $613,212.53

Action: Approve the refund as recommended by staff.

Bent Elbow Productions, Inc., SR AS 018-725016; 89000244430

1-1-96 to 3-31-00, $68,784.94

Action: Approve the refund as recommended by staff.

Lewis Galoob Toys, Inc., SR BHA 019-774985; 100398

1-1-96 to 6-30-99, $67,316.65

Action: Approve the refund as recommended by staff.

Bofors Incorporated, SR BHA 020-139981; 40969

7-1-96 to 6-30-99, $81,373.34

Action: Approve the refund as recommended by staff.

Safeway, Inc., SR Y OH 021-803859; 100406

1-2-94 to 1-2-99, $105,239.81

Action: Approve the refund as recommended by staff.

Oz Technologies, Inc., SR CHA 021-831838; 87576

1-1-00 to 3-30-00, $136,370.66

Action: Approve the refund as recommended by staff.

Cobra Golf Incorporated II, SR FHB 025-699734; 59415

10-1-99 to 12-31-99, $178,286.82

Action: Approve the refund as recommended by staff.

Denardi Equipment Company, Inc., SR Y FH 025-911830; 97805

4-1-95 to 9-30-97, $462,757.70

Action: Approve the refund as recommended by staff.

Shure Brothers Incorporated, SC OHA 030-661119; 36533

10-1-94 to 9-30-97, $202,322.33

Action: Approve the refund as recommended by staff.

ECI Telecom, Inc., SR S OHC 030-705166; 99215

4-1-97 to 3-31-00, $113,947.15

Action: Approve the refund as recommended by staff.

Kimberly Clark Worldwide Inc., SR OHA 097-020126; 100585

1-1-97 to 12-31-98, $170,692.13

Action: Approve the refund as recommended by staff.

Southern California Edison Company, SR Z AP 098-000037; 88453

10-1-97 to 12-31-97, $233,058.54

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

BCI Coca-Cola Bottling Company, L.A., SR Z AA 099-253492; 100423

1-1-96 to 12-31-98, $60,821.86

Action: Approve the refund as recommended by staff.

Puente Hills Ford, SR AP 099-274994; 89861

4-1-97 to 3-31-00, $53,731.68

Action: Approve the refund as recommended by staff.

Pharmchem Laboratories, Inc., SR BHA 099-487597; 34385

1-1-95 to 3-31-99, $60,856.28

Action: Approve the refund as recommended by staff.

Sun Microsystems Inc., SR Y GH 099-594260; 79165

1-1-00 to 3-31-00, $65,886.28

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

CREO, Inc., SC OH 099-862198; 100497

10-12-95 to 12-31-98, $145,112.07

Action: Approve the refund as recommended by staff.

SPECIAL TAXES MATTERS, REDETERMINATIONS AND DENIALS OF CLAIMS FOR REFUND, CONSENT

With respect to the Special Taxes Matters, Redeterminations and Denials of Claims for Refund, Consent Agenda, upon a single motion of Klehs, seconded by Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal and Ms. Mandel voting yes, Ms. Mandel not participating in Ultramar, Inc., MD MT 007-000024; 36520 in accordance with Government Code Section 7.9, the Board made the following orders:

Ultramar, Inc., MD MT 007-000024; 36520

5-1-98 to 5-31-98, $151,200.00

Action: Deny the claim for refund as recommended by staff. Ms. Mandel not participating.

Ted Orden, TK MT 044-011722; 89000948550

10-1-92 to 9-30-95, $136,204.76

Action: Redetermine as recommended by staff.

SPECIAL TAXES MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, CONSENT

With respect to the Special Taxes Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal, and Ms. Mandel voting yes, Mr. Chiang and Ms. Mandel not participating in Exxon Mobil Corporation, DD MT 057-250034; 30038 and Ms. Mandel not participating in Trafigura Ag, MD MT 007-001513; 7989 in accordance with Government Code Section 7.9, the Board made the following orders:

Exxon Mobil Corporation, DD MT 057-250034; 30038

1-1-97 to 2-28-99, $82,714.86

Action: Approve the refund as recommended by staff. Mr. Chiang and Ms. Mandel not participating.

State of California, Department of Transportation, DG MT 057-425527; 78883

7-1-95 to 3-31-97, $1,196,246.47

Action: Approve the refund as recommended by staff.

Trafigura Ag, MD MT 007-001513; 79893

3-1-00 to 3-31-00, $785,812.91

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

PROPERTY TAX NON-APPEARANCE MATTERS, NOT SUBJECT TO CONTRIBUTION DISCLOSURE STATUTE, CONSENT

With respect to the Property Tax Non-Appearance Matters, not subject to Contribution Disclosure Statue, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, and Mr. Andal voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board made the following orders:

GTE California Incorporated (201)

2000 ($149,523,000.00) Excessive Assessment

Action: Approve audit findings of excessive assessment.

Redwood Cellular Communication, Inc. (2636)

1999 ($3,000.00) Excessive Assessment

2000 ($5,400.00) Excessive Assessment

Action: Approve audit findings of excessive assessment.

Board Roll Changes

1997 Roll

1998 Roll

1999 Roll

2000 Roll

Action: Approve Board Roll changes as recommended by staff.

The Board recessed at 10:40 a.m. and reconvened at 10:50 a.m. with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

PETITION FOR RELEASE OF SEIZED PROPERTY

Suresh Parmar, CP HQ 50-000886; CR HQ 02-001166; 90408

June 27, 2000

For Petitioner: Waived Appearance
For Sales and Use Tax Department: Monica Gonzalez Brisbane, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the Board properly seized the cigarettes and tobacco products on June 27, 2000.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board determined the staff properly seized the cigarettes and tobacco products.

BUSINESS TAXES APPEALS HEARINGS

James & Lois McVeigh, SA UT 82-675421; 48362, 52483

1-31-98, $9,377.00 Tax

For Petitioner: James McVeigh
For Sales and Use Tax Department: Robert Tucker, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioners have shown that the purchase of a motor home from an Oregon dealer is exempt from use tax because there is sufficient evidence that petitioners took delivery in Oregon and did not bring the motor home into California within 90 days after its purchase.

Whether there should be a reduction in the interest liability due to delays in processing and billing the liability.

Action: Mr. Andal moved to grant petition. The motion was seconded by Mr. Parrish but failed to carry, Mr. Parrish and Mr. Andal voting yes, Mr. Chiang, Mr. Klehs and Ms. Mandel voting no.

Upon motion of Mr. Klehs, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Steinbeck Brewing Company, SR CHA 99-599977; 29919

4-1-95 to 9-30-98, $3,266.26 Tax, $00.00 Penalty

For Petitioner: Waived Appearance
Geoff Harries, President

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether audited taxable sales were computed in accordance with the facts.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs and Mr. Chiang voting no, the Board ordered that the petition be granted.

Fooad Laghaei & Behrooz Pejoohesh, SR BH 97-101870; 89002056870

7-1-93 to 3-31-97, $19,538.46 Tax, $1,953.81 Penalty, Negligence

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

Mr. Klehs announced he would not be participating in Avar Construction System, Inc., SS GH 26-754028; 8900066340, -450, and left the Boardroom.

Avar Construction System, Inc., SS GH 26-754028; 8900066340, -450

4-1-93 to 6-30-96, $244,164.77 Tax

For Petitioner: Trudi Friedrich
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: A disqualifying contribution to Mr. Klehs was disclosed. No other disqualifying contributions were disclosed.

Issues: Whether the measure of tax based on the cost accountability test has been established in accordance with the facts.

Whether petitioner’s allegation that the audit liability represents a financial hardship warrants relief from the tax.

Action: Mr. Parrish moved to grant with regards to the LATC tax. Motion failed for lack of a second.

Upon motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs not participating, the Board ordered that the petition be submitted for decision.

Mr. Klehs entered the Boardroom.

FINAL ACTION OF LEGAL APPEALS MATTER, ADJUDICATORY HELD ON FEBRUARY 15, 2001

T.A.H.C., Inc., SR KHE 22-746216-010, 89000371490

10-1-94 to 9-30-97, $1,476.76 Tax

Considered by the Board: December 14, 2000

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal voting yes, Ms. Mandel abstaining, Mr. Chiang not participating, the Board ordered that the petition be granted.

BUSINESS TAXES APPEALS HEARINGS

Germain’s Inc., SR ARF 98-001491; 89002085330

7-1-93 to 10-31-96, $256,390.24 Tax, $00.00 Penalty

For Petitioner: Robert A. Petersen, CPA
Bill Van Styke, California Planting Cotton
Seed Distributors
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner’s sale of fixtures and equipment included certain items that were leasehold improvements owned by petitioner’s landlord, and therefore, should be excluded from the measure of tax.

Whether the sale of assets at issue was a bulk sale, and therefore, the measure of tax should be based on the independent appraisal that the parties relied upon.

Whether sufficient evidence was provided by petitioner to show that it did not collect more sales tax reimbursement than was paid to the Board.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be granted as to the disputed measures.

FINAL ACTION ON APPEALS HEARD FEBRUARY 14, 2001

Mr. Klehs moved that the petition of Jeff & Elaine Thomson, 76295, be redetermined. Mr. Andal made a substitute motion that the appeal be denied and be referred to the Board of Control, the Appeals Section to help appellant with the application to the Board of Control and the Franchise Tax Board to write a letter of support. The motion was seconded by Mr. Parrish and duly carried, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs voting no, Mr. Chiang abstaining, Ms. Mandel not participating.

Mr. Andal moved to grant the petition of Mazen M. & Haifa Mardini, 98A-0730; 89002465510, seconded by Mr. Parrish but failed to carry, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

Mr. Klehs moved that the petition be redetermined. The motion failed for lack of a second.

Upon the motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel abstaining, the Board ordered to grant the petition as to the disputed measures.

Upon motion of Mr. Klehs, seconded by Ms. Mandel and duly carried, Mr. Chiang, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish voting no, Mr. Andal not participating, the Board ordered that the petition of Charter Aviation, SU KHD 99-961280; 89002448190, be redetermined as recommended by the Appeals Section.

FINAL ACTION ON PETITIONS HEARD FEBRUARY 15, 2001

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Klehs and Mr. Andal voting yes, Mr. Chiang voting no, Ms. Mandel abstaining, the Board ordered that the petition of James & Lois McVeigh, SA UT 82-675421; 48362, 52483, be granted.

Mr. Andal moved that the petition of Avar Construction System, Inc., SS GH 26-754028; 8900066340, -450 be redetermined. The motion failed for lack of a second.

Upon motion of Ms. Mandel, seconded by Mr. Parrish and unanimously

carried, Mr. Parrish, Mr. Chiang, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs not participating, the Board ordered that the petition be redetermined in accordance with the revised recommendation of the Appeals Section. The Board directed staff to provide a three-year payment plan for petitioner.

Mr. Andal left the Boardroom.

BUSINESS TAXES APPEALS HEARINGS

Abdulhafiz S. Elzaatari, SR DH 22-735869; 89000370060, -070

7-1-94 to 6-30-97, $5,712.64 Tax, $1,033.92 Penalty, Negligence

For Petitioner: Abe Golomb, Representative
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner has established that certain of its disallowed sales were nontaxable sales for resale.

Whether relief from the 10 percent penalty for negligence is warranted.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Ms. Mandel voting yes, Mr. Andal absent, the Board ordered that the negligence penalty be deleted; otherwise redetermined as recommended by the Appeals Section.

Donald Bruce Clarke, et al., SX GH 99-701679; 89002364830

7-1-94 to 5-31-95, $15,500.00 Tax, $00.00 Penalty, Failure to Pay Timely

For Petitioner: Donald Clark
Heinz Binder, Attorney
For Sales and Use Tax Department: Jeffery Graybill, Counsel

Action: The Board deferred consideration of this matter.

The Board adjourned at 12:10 p.m.

The foregoing minutes are adopted by the Board on April 19, 2001.